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One kanal house purchaser to pay Rs0.8m tax - LahoreEstate - 06-24-2009 07:25 AM
LAHORE - The government is fleecing the public by imposing several taxes including Transfer Fee, Capital Value Tax (CVT), Provincial Stamp Duty, Cantonment Board Tax and Transfer of Immovable Property Tax (TIP) on sale and purchase of properties.
If the govt remains stick to its policies of imposing more taxes on real estate than no one can stop the capital to fly once again to Dubai because of their liberal tax policy.
A purchaser of one kanal house has to pay Rs 7,00,000 to Rs 8,00,000 in the head of all these taxes. In case of one kanal plot in a developed society like DHA, the purchaser has to pay around Rs 4,00,000 in the form of above mentioned taxes and if it is of 2 kanal plot the amount goes to Rs 7,00,000.
This was stated by Maj ® Waseem Anwar Ch, President of DHA Estate Agents Association, in a letter written to Editor-in-Chief The Nation Majid Nizami on Tuesday.
Maj ® Waseem lamented when CVT was levied, it was declared the province would not levy any tax, but last year Punjab CM Shahbaz Sharif levied the Provincial Stamp Duty and added that Punjab is the only province, which has levied stamp duty as no other province has levied any stamp duty.
He demanded the government to streamline the tax policy.
He said that Shaukat Tarin, despite his repeated pledges, announced no tax on stock exchange, agriculture and textile but doubled the CVI tax on real estate.
Further he announced to convert CVI into Capital Gain Tax, which will once again open a pandora box, giving free hand to Revenue Department to black mail a seller while assessing capital gain, Waseem Anwar stated.
He maintained: “Real estate is not just the matter of selling or purchasing of plots. When a buyer starts constructing house, he helps 28 other industries including cement, brick, steel, ceramic, cable and glass industries etc.
Besides skilled and unskilled manpower gets job opportunity. In 1 Kanal house, around 15 Lakhs is paid to skilled or unskilled workers in shape of wages. So, housing sector really helps other industries. Thus there is a need that govt should encourage this sector. Govt should not try to levy more taxes otherwise flight of capital will be in offing immediately after passing of finance bill.”
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Regional/Lahore/24-Jun-2009/One-kanal-house-purchaser-to-pay-Rs08m-tax